Study Abroad

Photo from Freepik

Benefits of a Study Abroad Loan 

By Akansha Bhadula 

Discover how study abroad loans can make your aspirations a reality. From lower interest rates to tax benefits, these loans offer a pathway to success and financial empowerment. 

Introduction 

Video from Canva

Interest rates on study abroad loans are lower than personal loans. Female students can avail an additional 0.5% concession from Government banks. 

Lower Interest Rates 

Photo from Freepik

1

Education loans offer a moratorium period, unlike personal loans. No EMI payments until course completion + 6 months (extendable to 12), enabling focused studies. 

Moratorium Holiday - Pay after Completion 

Photo from Freepik

2

Education loan for abroad studies covers all essential expenses: tuition, travel, housing, university fees, food, living costs, laptops, and educational tools. 

Photo from Freepik

A Wide Range of Expenses Covered 

3

The Government of India offers interest subsidy schemes for financially disadvantaged students. Central Sector Interest Subsidy, Padho Pardesh Scheme, Dr. Ambedkar Scheme - waive interest during moratorium period. 

Photo from Canva

Education Loan Interest Subsidy 

4

Education loan interest payment is tax-deductible under Section 80E of the Income Tax Act, 1961. Reduce your taxable income and save more for your future. 

Tax Benefit - Section 80E 

Photo from Freepik

5

Students with education loans pay a reduced TCS rate of 0.5% on foreign remittances exceeding Rs 7 lakh. The entire TCS amount can be claimed back, providing financial relief. 

Photo from Freepik

Tax Collection at Source (TCS) Relief 

6

CIBIL: Credit report summarising credit history. Score ranges 300-900, 750+ is good. Education loan boosts CIBIL by timely EMI repayment for future loan approvals. 

Build Your CIBIL Score 

Photo from Canva

7

Secure an education loan against assets like FDs, insurance, and Government bonds. Preserve your valuable assets and maintain financial flexibility. Focus on your future. 

No Need to Liquidate Valuable Assets 

Photo from Canva

8

Education loans make students responsible for repayment after studies, relieving parents of financial burdens. Empower yourself to fund your own education journey. 

Liberating Parents from Loan Burden 

Photo from duoplanet

9

Study abroad loans empower you to unlock your global potential. With lower interest rates, tax benefits, and financial freedom, you can focus on your education and embrace a brighter future. 

Recap

Photo from Freepik

Thanks for reading

Photo from Freepik